Ether's supply on crypto exchanges has reached its lowest point since November 2015, prompting various predictions from traders and analysts.
Current Ether Supply Situation
According to the analytics platform Santiment, Ether's supply on exchanges has dropped to 8.97 million, the lowest in nearly 10 years. This suggests that investors are moving their ETH into cold storage for long-term holding, with hopes for a future price increase. Ether reserves on exchanges have decreased by 16.4% since late January.
Market Impact
A significant decline in Ether supply on exchanges can signal a potential price surge, commonly known as a 'supply shock.' However, this can only happen if demand remains strong or increases to outpace the reduced supply. A similar scenario was seen with Bitcoin in early 2018.
Future Outlook and Predictions
Some traders and analysts anticipate that the potential supply shock will lead to an Ether price increase. Trader Crypto General remarked that, 'It is just a question of time before the big supply shock.' However, Ether still faces the challenge of overcoming its current bearish trend.
While the decline in Ether supply on exchanges raises hopes for a price surge, other market signals suggest uncertainty. Traders are closely monitoring the situation to determine if this is a 'generational bottom' for Ether.
